In the last post I wrote about the problems that need to be addressed in Mumbai’s AC locals. Today let us have a close look at one of those issues – fare structure.
IR has been very lazy in deciding AC local fares. First big mistake was pricing AC local journey tickets at 1.3 times of non AC first class (referred to as FC from now) fare. This pretty much priced it out of consideration of non MST travellers (once in a while commuters). For season tickets they simply picked up existing formula of NON AC fares & applied it to AC. What prevented IR from making different rules for AC MST?
One argument supporting 1.3x FC fare for journey ticket is that it is still cheaper than an Ola/Uber. Completely agreed. But then what is the sample size of Ola/Uber users? I am sure it is not more than 5% of daily commuters. So if IR’s target audience for AC rakes is such a low percentage of total passengers, how do they expect to fill up 12 coach fully AC rakes with just Ola & Uber users? The target audience should be much wider than this! Any aam aadmi does not think twice before choosing a metro for single journey. Honestly tell me, will he choose AC local without hesitation when its single journey ticket is priced thrice of metro ticket? It is simply not affordable to the majority.
The solution:
IR should immediately slash the single journey ticket price & price it somewhere between non AC second class & first class. I would say it should be around 0.5 to 0.6 times the first class fare. This will raise many eyebrows, but we should change with times. Non AC first class is a concept that has become obsolete in today’s times. Even AC chair car fares are lower than non AC FC on long distance trains, so why can’t AC local fare be lower than non AC FC? This is the only way to lure more people to AC rakes from second class. Metro has already proved that people are ready to pay a slight premium for AC travel. 1.3 times FC fare is not going to work. Period.
Now coming to season ticket. Let’s compare Mumbai metro line 1 & AC local. Mumbai metro line 1 has one of the highest fare in all metros. End to end journey ticket (11 km) is Rs 40 (it will be Rs 20 for other metro lines in Mumbai). Comparable AC rake journey ticket is Rs 90.
Now what is the monthly unlimited trip pass rate for both of these? Metro line 1 costs Rs 1400 which is 35 single journeys. And AC locals? Just Rs 885, which is not even the cost of 10 single journeys. IR is literally selling MST for peanuts.
Let’s say AC local single journey ticket for this distance is changed to Rs 40 (which is 0.6 times first class ticket). MST can be kept at 25 single journey to start with, which comes to Rs 1000. The increase of Rs 115 compared to the current Rs 885 MST rate is not unreasonable for AC travel. This fare structure will ensure more patronage by journey ticket holders. The increase in ticket holders at low fare can even lead to increase in total revenue from journey tickets. Two people purchasing a Rs 40 ticket is almost same as 1 person travelling on a Rs 90 ticket. I am sure the lower fare will not just double the passenger count. The increase will be higher. So there will be dual benefit of improved patronage + nearly same or more revenue from ticket sales. Revenue from MST sales will also see a rise in this structure.
IR badly needs to try out this fare structure. There are chances that it may not work, as you can never predict public sentiment in India. But if there is any fare structure that has a good chance of turning AC local’s fortunes, it is this. At the present fare structure the services are not going to succeed anyway. So what is the harm in trying?
Do leave your thoughts in the comments section!
PS:
- I have just taken 1 sample fare slab for comparison & demonstration of what needs to be changed. Some tweaks may be needed in actual implementation.
- I have assumed a fare of 0.6x FC fare for journey tickets. That is the maximum point at which AC locals can be priced. Ideally it should be priced even lower.
- The fare structure also needs to be complemented with a reasonable availability of services. If there is 1 service every 2 hours then there is no hope of success.